Finance

The committee met to begin its study of Bill C-19, the Canada groceries and essentials benefit act. The Minister of Finance and National Revenue, François-Philippe Champagne, appeared with departmental officials to explain the bill, which would replace the GST credit with a more generous benefit. The minister stated that the benefit would increase the existing credit by 25% and add a one-time payment equivalent to 50% of the current benefit, providing up to $950 for a single person and $1,890 for a couple with two children in the 2026-27 benefit year. He described the measure as a bridge to longer-term economic growth and noted accompanying structural measures, including a $500-million strategic response fund, immediate expensing for greenhouses, and a national food security strategy.

Conservative members questioned the minister about his 2023 promise to stabilize grocery prices, citing a 7.83% increase in food prices since then and asking whether he would apologize. The minister attributed food inflation to global factors such as supply chains, climate change, and currency fluctuations, and said the work was in progress. Conservatives also pressed him on how the $11.3-billion cost of the benefit would be financed, given the existing deficit, and whether it would be treated as an operating expense. The minister replied that every measure has an impact on the budget and that the government chose to support Canadians.

Bloc Québécois members asked why the benefit was not paid monthly rather than quarterly, and why the government had not attracted new foreign grocery chains to Canada. The minister cited administrative costs for monthly payments and said that changes to commercial lease rules had removed a barrier to entry. Liberal members emphasized the importance of the benefit for low- and modest-income families and noted that it complemented other programs such as the Canada child benefit and the national school food program.

The committee did not take a decision on the bill during this meeting; the study of Bill C-19 remained ongoing.